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1. In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado Division <br />of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply <br />with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations <br />for the protection of water resources. The April 30, 2010 letter from DRMS requires that you <br />provide information to DRMS to demonstrate you can replace long term injurious stream <br />depletions that result from mining related exposure of ground water. The DRMS letter identifies <br />four approaches to satisfy this requirement and requested the operator to provide this <br />information to DRMS by April 30, 2011. A copy of the response sent to DRMS must be provided <br />to this office to confirm the approach that will be utilized. If the information provided to DRMS is <br />pursuant to approach no. 4, you will need to provide additional documentation to this office that <br />specifies what water rights or other permanent water source will be dedicated to the SWSP to <br />assure that all permanent depletions from either an unforeseen abandonment of the site by the <br />Applicant or as a result of long term ground water exposure after completion of mining and <br />reclamation will be replaced so as to prevent injury to other water rights. <br />In a letter dated May 6 2010 (attached), Everist Materials chose approach No. 4. Additional <br />documentation is being currently prepared and will be submitted to you. <br />Raul Passerini, P.E. <br />Water Resources Engineer <br />(970) 945 -6777 Voice <br />(970) 945 -1137 Facsimile <br />www.resource-eng.com <br />The information contained in this e-mail is PRIVILEGED AND CONFIDENTIAL information intended only for the use of the <br />individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent <br />responsible to deliver it to the intended recipient, you are hereby notified that dissemination, distribution, or copying of this <br />communication is strictly prohibited. If you have received this communication in error, please immediately notify us by telephone <br />and delete the original message from your system. Thank You. <br />